June DMark Gapped Open
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading 1.50 points higher and the Bond Market Futures are trading down 3 ticks.
The June Dmark [DMM9>DMM9], mentioned last night, gapped lower on the open and sold off to close down 64 points today. These are the types of moves that are possible when a low volatility situation reverts back to its mean.
The June Japanese Yen [JYM9>JYM9], on the Pullbacks Off Lows List, rallied earlier today (a) but reversed to close poorly (b). This may have breakout players trapped on the wrong side of the market. Look for a shorting opportunity here.
Source: Omega Research.
For you breakout players, July Coffee [KCN9>KCN9], mentioned last night and up over 5 ½ cents, broke to major new highs today. Look for a buying opportunity here or better yet, wait for a pullback. July Orange [OJN9>OJN9] broke out of a 4 month wide-and-loose base today. Look for a buying opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!